Shockingly, a counterfeit factory has produced a 3-nanometer chip.

Chapter 100 Huaxin Invests in Tencent!

Shen Fei didn't speak, but stared at the penguin horse for a while before opening his mouth again.

"I can stay out of the social networking market, but Mr. Ma has to agree to this proposal."

"I'm all ears."

Seeing that Shen Fei finally relented, Penguin Ma finally breathed a sigh of relief.

"Forget about investing, just acquire it at a valuation of $30 billion. At the same time, Transsion will invest $10 billion in cash in Tencent."

Considering that Mr. Ma probably can't come up with that much cash, well, we'll accept a share swap. Giving us 20% of the shares in total is fine.

This would be considered a deep collaboration for us. We'll handle the hardware, and you'll handle the software. By combining the hardware and software, we can provide users with a better experience.

This plan also saves me from worrying about Huayin Games.

Shen Fei looked at Penguin Horse with an expression that said, "You've hit the jackpot!" It wasn't that he thought Penguin Horse was a sucker; it was genuinely true!

Huayin Games is worth that price!

But Penguin Horse pointed at Shen Fei, then at himself. He wanted to take a sip of tea to suppress his anger, but Shen Fei's plan was so outrageous that he spat it out before he could even swallow.

The secretary next to him quickly helped him wipe it off...

"Mr. Shen, let's not talk about how much that shell is worth. Do you know what Tencent's market value is right now?"

"I haven't looked into it much, but as you said, it's already the world's third-largest internet company, so it should be quite valuable now, right?"

"Around HK$2500 billion. A 5% stake is worth at least US$15 billion."

"This is just the market price. To acquire that many, you'd need to pay at least $17 billion." At this point, Penguin Ma's anger subsided considerably. "You can't buy them for $10 billion. You've basically given them a 5% discount."

"I know," Shen Fei said directly, without pretending to be confused, "but some things can't be bought at market price."

He pushed the teacup on the table forward a step, bringing it just a step away from Penguin Horse's teacup.

"Mr. Ma, aren't you worried that I'll throw this $10 billion into the social media market? Since you know that the capital of those three companies is mine, it means we've already validated the market's development."

There are no penguins there, but there are other international social media platforms. I spent less than a hundred million dollars on those companies, and now they're ten times that amount…”

He suddenly looked up and leaned closer to Penguin Horse, delivering another blow: "But Transsion's domestic users have already exceeded 300 million. After Honor's release, that number will reach at least 700 million or even 1000 million..."

Many of these users are connecting to the internet for the first time, registering an account for the first time, or using a smartphone for the first time... They're not part of the QQ user base...

Penguin Horse didn't respond, which was his biggest worry and the reason he most wanted to stop it.

"If you agree now, it's a 20% stake to buy my participation." Shen Fei's words were soft, yet they put immense pressure on Penguin Ma across the table. "Doesn't that seem like a great deal?"

He placed his hand on the terms and conditions.

"In exchange for 20% of the shares, you will get my promise. At the same time, the traffic entry point of the microphone will be open to all applications in the Tencent ecosystem. At that time, our 1+1 will be greater than 2, and we can completely stifle those new challengers."

He looked at the penguin horse: "Instead of protecting ourselves, we should buy an ally with whom we share common interests and work together to eliminate other challengers."

Mr. Ma, this is business.

……

Penguin Horse remained silent for a long time.

He recalled that in 2005, Microsoft had offered $800 million to acquire Penguin.

Penguin Horse wasn't sold not because the price wasn't right, but because he knew what he held in his hands: the future virtual identities of hundreds of millions of Chinese netizens.

Of course, the main reason is that the higher-ups won't let him sell it...

Fortunately, thanks to his persistence, Tencent's market value exceeded HK$2000 billion this year. This is not the upper limit, but a new starting point.

But now Shenyang Aircraft Corporation has cut that valuation by more than half.

And they immediately asked for 20%...

But another reality is facing him: the mobile internet landscape is being reshuffled, and mobile phone manufacturers are rapidly becoming new traffic gateways.

Fruit has its own Apple Store, Google has its own Google Play, Transsion has its own Taishan Mall...

Hardware manufacturers are becoming distribution channels.

Meanwhile, distribution channels are starting to drive changes in content.

"One billion US dollars, 20% stake." Penguin Ma repeated these numbers. In his view, that Huayin Games company and those three games might be very profitable, but their lifespan wouldn't be that long...

It's not worth 30 billion US dollars at all!

"Mr. Shen, you're betting that the penguin will always be in the center of the table."

"No!" Shen Fei shook his head. "I'm betting that I'll stay in the center of the table and that you, Mr. Ma, will make the right choice."

For the first time during this round of negotiations, Shen Fei showed a genuine smile.

"Just like you rejected Microsoft a few years ago."

…………

Penguin Horse suddenly smiled too.

"A $5 billion investment," he said, "20% of the shares, plus homepage placement on all Transsion's product lines, a 7% discount on pre-installed software, and a 30% discount on Huawei's software... for three years."

As for Huayin Games, that's just a shell company; forget about it. I and the shareholders can't explain why they've invested 30 billion, and we can't persuade them otherwise.

"18 billion, the international operation rights for Angry Birds are handed over to you, and other games will be promoted immediately..."

"President Shen, I have already given up a lot of benefits. If the profit is too small, I will not be able to persuade those shareholders to give up this 20% of the shares."

At least 25 billion…

"Angry Birds isn't that cheap, and it's part of a series..."

After some back and forth, the two parties finally settled on a budget of $23 billion, with Huayin Games remaining under Huaxin Investment's control.

However, Tencent will have priority in licensing subsequent games developed by PopCap... The operating rights for the upcoming Angry Birds game will go directly to Tencent, with the specific revenue sharing ratio determined by the market.

The signing ceremony was finally scheduled for a week later.

Although it is unknown how Penguin Horse persuaded the other shareholders, Huaxin Investment did indeed acquire a 20% stake.

Just before the contract was about to be signed, Tencent officially released an announcement and applied to the Hong Kong Stock Exchange for a trading suspension!

Many retail investors rubbed their eyes in disbelief upon seeing the announcement of Tencent's trading suspension. The stock was falling yesterday, and today it's suspended...

Something's not right!

"What do you mean? I managed to get out yesterday, so why is my stock suspended?"

"Yesterday it suddenly dropped 3%, but I couldn't bear to sell, so I added a little bit to my position."

"Upstairs, is it really just a little bit?"

Let's find a prime location before the sales open, or we might not have time later.

"A major shareholder has entered the market..."

Many beginners don't understand what this is all about.

Shouldn't the stock price hit the daily limit up if the major shareholder enters the market? How could this be... until someone reminded them to check the suspension announcement.

They soon saw the announcement on Tencent's official website and the Hong Kong Stock Exchange's official website, but they were quickly stunned.

Tencent Penguin Technology Group Co., Ltd.

Announcement regarding suspension of trading due to major strategic investment and shareholding change...

After seeing the contents, they couldn't laugh anymore.